The eco.business Fund, a public-private partnership, will provide financing for companies and cooperatives in Latin America that contribute to the conservation of biodiversity and the sustainable use of natural resources.
It will finance these companies either directly or through local financial intermediaries.
The primary focus will be on the agriculture, forestry, fisheries and ecotourism sectors.
Through a “development facility”, the fund will also offer technical support to financial institutions or businesses to ensure sustainable implementation of its investments. Both the fund and the development facility are open to other investors who share the fund’s goals.
The German Federal Ministry for Economic Cooperation and Development (BMZ) has provided €17m as seed funding through KfW, and up to an additional €3m for the “development facility”, while CI will invest $500k in 2015.